On June 7 local time, Reuters reported that Western Digital, a memory storage device manufacturer, said on Tuesday that it was reviewing its strategic plan, including the option to spin off the flash memory and hard disk businesses This statement was issued one month after the famous activist investor Elliott management disclosed that it held nearly $1billion of shares in the company and promoted its spin off of flash memory and hard disk business. Elliott owns about 6% of the California based company.
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It is reported that Elliott, headquartered in New York, has also said that it has provided more than US $1billion of incremental equity capital to the flash memory business of Western Digital, with an enterprise value of US $17billion to US $20billion.
David goeckeler, CEO of WD, said in a statement: "through this process, we are actively carrying out a wide range of strategic and financial options, which will help further optimize the value of WD, including Elliott's proposal to invest incremental equity capital in our flash memory business." (proofread / Stein)